Question

In: Finance

Dana Company projects a sales revenue of $150,000 during the calendar year 2014. Using the income...

Dana Company projects a sales revenue of $150,000 during the calendar year 2014. Using the income statement provided below, prepare a pro-forma income statement using the percent-of-sales method.

Income Statement

Dana Dairy Products

For the Year Ended December 31, 2013

Sales Revenue 100,000
Less: Cost of Good Sold 87,000
Gross Profits 13,000
Less: Operating Expenses 11,000
Operating Profits 2,000
Less: Interest Expense 500
Net Profits before taxes 1500
Less: Taxes (40%) 600
Net Profits after taxes 900

Solutions

Expert Solution

The Pro-forma income statement is calculated by dividing the current year entries by the current year sales revenue and then multiplying the ratios by projected sales revenue

Pro- Forma income statement is given in the below image, please find it

jeff jeffy answered 4 hours ago
Next > < Previous

Related Solutions

During 2014, XX has net income of $725,000. Throughout the year, the company had 150,000 shares...
During 2014, XX has net income of $725,000. Throughout the year, the company had 150,000 shares of common stock outstanding. Also, the company has 25,000 shares of preferred stock that pay a dividend of $5.00 per share that is convertible into 5 shares of common stock for each share of preferred. The preferred stock is considered to be dilutied. The tax rate for XX is 40%. a: What is basic earnings per share? Round to the closest cent. b. What...
Income Statement For the Year Ended December 31, 2014 Revenue: Sales $ 792,845 Cost of Goods...
Income Statement For the Year Ended December 31, 2014 Revenue: Sales $ 792,845 Cost of Goods Sold $   275,000 Gross Profit $ 517,845 Operating Expenses: Depreciation Expense $     35,159 Insurance Expense $     82,000 Office Expense $     21,700 Advertising Expense $       8,400 Utilities Expense $     31,000 Wage Expense $     80,350 Bad Debt Expense $     25,000 Pension Expense $     40,000 Income from Operations: $ 194,236 Other Revenue: Rent Revenue $ 12,000 Interest Revenue $ 19,561 Other Expenses: Unrealized Holding G/L $      (8,000)...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $1,060,000 100 % Cost of goods sold 699,600 69 Gross profit $360,400 31 % Selling expenses $212,000 18 % Administrative expenses 84,800 7 Total operating expenses $296,800 25 % Operating income $63,600 6 % Other income 21,200...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $2,240,000 100 % Cost of goods sold 1,478,400 71 Gross profit $761,600 29 % Selling expenses $448,000 16 % Administrative expenses 179,200 7 Total operating expenses $627,200 23 % Operating income $134,400 6 % Other revenue 44,800...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and...
Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps...
Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Jordan’s accounting records provide the following information for the past year: Purchases of direct materials $1,675,000 Direct materials inventory, January 1 380,000 Direct materials inventory, December 31 327,000 Direct labor 2,000,000 Indirect labor...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages. Sorenson Electronics Company Electronics Industry Average Sales $1,710,000 100 % Cost of goods sold (1,162,800) (71) Gross profit $547,200 29 % Selling expenses $(307,800) (12) % Administrative expenses (119,700) (11) Total operating expenses $(427,500) (23) % Operating income $119,700 6...
Partial Income Statement Year Ending 2014 Sales revenue $350,200 Cost of goods sold $142,000 Fixed costs...
Partial Income Statement Year Ending 2014 Sales revenue $350,200 Cost of goods sold $142,000 Fixed costs $43,000 Selling, general, and administrative expenses $27,800 Depreciation $46,000 Partial Balance Sheet 12/31/2013 ASSETS LIABILITIES Cash $15,800 Notes payable $14,100 Accounts receivable $28,200 Accounts payable $19,200 Inventories $47,900 Long-term debt $189,800 Fixed assets $368,100 OWNERS' EQUITY Accumulated depreciation $140,200 Retained earnings Intangible assets $82,000 Common stock $131,800 Partial Balance Sheet 12/31/2014 ASSETS LIABILITIES Cash $25,900 Notes payable $12,200 Accounts receivable $19,100 Accounts payable $23,900...
Partial Income Statement Year Ending 2014 Sales revenue $350,200 Cost of goods sold $141,800 Fixed costs...
Partial Income Statement Year Ending 2014 Sales revenue $350,200 Cost of goods sold $141,800 Fixed costs $43,200 Selling, general, and administrative expenses $28,100 Depreciation $45,900 Partial Balance Sheet 12/31/2013 ASSETS LIABILITIES Cash $15,900 Notes payable $14,100 Accounts receivable $27,900 Accounts payable $18,900 Inventories $48,000 Long-term debt $190,100 Fixed assets $368,000 OWNERS' EQUITY Accumulated depreciation (-) $141,500 Retained earnings Intangible assets $82,000 Common stock $131,800 Partial Balance Sheet 12/31/2014 ASSETS LIABILITIES Cash $26,200 Notes payable $11,800 Accounts receivable $18,900 Accounts payable...
During 2014, Robby’s Camera Shop had sales revenue of $158,000, of which $74,000 was on credit....
During 2014, Robby’s Camera Shop had sales revenue of $158,000, of which $74,000 was on credit. At the start of 2014, Accounts Receivable showed a $25,000 debit balance, and the Allowance for Doubtful Accounts showed a $900 credit balance. Collections of accounts receivable during 2014 amounted to $59,000. Data during 2014 follows: a. On December 31, 2014, an Account Receivable (J. Doe) of $1,300 from a prior year was determined to be uncollectible; therefore, it was written off immediately as...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT